Another Mixed Treasury Auction, But Look at Those Yields

The government sold $21 billion of 10-year notes at a record low yield, coming in at 2%, about 1 basis point higher than expected. Demand gauges were mixed, and with Wednesday’s 30-year sale on tap Treasurys are down on the day, pushing their yields a little higher.

But not too high.

The 10-year’s bid-to cover ratio of 3.03% was lower than the 3.2% average of the past 8 sales. Indirect bids, a proxy for foreign demand, were just shy of their average at 48.5%, but well above last month’s 35.4%, when the prior record-low 10-year auction yield was set.

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